New hires are still quitting despite softening labor market

Despite a softening labor market, nearly 40% of employees with less than six monthsin a company plan to leave within the next year, marking a 6% increase from last year, according to a report from Qualtrics.

The honeymoon phase for new hires is short-lived, with dissatisfaction often stemming from insufficient support after onboarding. With the labor market providing ample opportunities, new hires maintain a cautious eye on alternative roles, emphasizing the need for a balanced focus on recruitment and retention efforts, including comprehensive onboarding and team-building resources.

Gartner research highlights a related trend of new hires declining job offers even after acceptance, with 51% either rejecting the offer or disappearing before the start date. The competitive labor market, economic uncertainty, and frequent layoffs contribute to new hires' lack of loyalty, reflected in a substantial percentage remaining open to other job offers.

This turnover trend poses challenges for employers, incurring costs ranging from $4,000 to $20,000 for recruitment and onboarding. As the job market evolves, HR leaders must prioritize transparency, connection-building during the interview process, and ongoing efforts to sell the job and organization to improve the stickiness of job offers.

The future poses additional challenges to new hire retention, with potential economic improvements diminishing stickiness, growing mistrust of employers, and the rise of remote work contributing to job-hopping. HR leaders must adapt strategies to keep candidates engaged, emphasizing flexibility in working hours as a crucial aspect to meet employees' needs and enhance job satisfaction.